When the cost of gold rises in January C because it did last month by 5.3 percent C it usually means investors can get all of those other year to be a good one for that world’s commodities.
In fact, when gold has increased in January, the S&P GSCI, a catalog composed of 24 commodity futures, has gone onto record an annual gain 72 per cent of the time, according to an analysis by S&P Dow Jones Indices. With gold being up last month, there’s a 72 per cent chance that the S&P GSCI will rise this season.
The index has lost a little over six per cent so far in 2016 C but tanked 26.1 per cent in the final Twelve months.
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Nine of the 24 commodities in the S&P GSCI posted gains in January. Of the 15 negative ones, only three have experienced the majority of years ending negatively according to their losing January months, concluded Jodie Gunzberg, global head of commodities and real assets at S&P Dow Jones Indices who crunched the data.
Petroleum’s direction in January is only as good as a coin flip, however when Brent crude or copper founder in the first month, the S&P GSCI has had a powerful year 63 percent and 68 percent of times, respectively.
In January, the S&P GSCI lost 5.2 percent. Gunzberg’s analysis of their 24 commodities shows that there’s a 53 percent chance that the index will end 2016 in negative territory, providing fodder towards the bears, too.
